Break-even Calculator
Find out how many units you need to sell to cover costs.
What is the break-even point and how is it calculated?
The break-even point is the number of units a business must sell to cover all fixed and variable costs, after which every additional unit generates profit. It is calculated as Fixed Costs ÷ (Selling Price per Unit – Variable Cost per Unit). This tool simplifies that analysis for entrepreneurs, freelancers, and small businesses.
How to use the Break-even Calculator
Enter your total fixed costs (e.g. rent, salaries), variable cost per unit (e.g. materials), and selling price per unit. Click "Calculate" – the calculator instantly displays the number of units you need to sell to break even. If the price is not higher than the variable cost, the tool warns that profit is impossible.
Example calculation
If fixed costs are $10,000, variable cost is $50 per unit, and selling price is $150 per unit, the contribution margin is $100. Break-even = $10,000 ÷ $100 = 100 units. That means you must sell 100 units just to cover all costs.
Frequently Asked Questions
What happens if variable cost exceeds selling price?
You lose money on every unit sold. No break-even point exists because each sale increases your loss. The calculator will alert you to this situation.
Does the break-even point include profit?
No, the break-even point only tells you when you stop losing. Profit starts from the very next unit after the break-even threshold is reached.